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RELATIONSHIP BETWEEN TOURISM AND ECONOMIC GROWTH

Luo Hui

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Abstract

This paper,by means of cointegration analysis and Granger consequential check,analyzes the relationship between tourism and economic development of Xinjiang during 1990 to 2006 with the results implying that the both have a long-term cointegration,not continuous temporal sequence.Via the Granger Causality Test,the tourism always lags the economic development.There is no consequential relationship between tourism and economic development in a short term,but a balanced consequential relationship in a long term.The international tourism income goes ahead of the internal tourism income in pushing the economic development.This conclusion offers a reference to make policies for tourism in Xinjiang.

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What this paper is about

This paper,by means of cointegration analysis and Granger consequential check,analyzes the relationship between tourism and economic development of Xinjiang during 1990 to 2006 with the results implying that the both have a long-term cointegration,not continuous temporal sequence.Via the Granger Causality Test,the tourism always lags the economic development.There is no consequential relationship between tourism and economic development in a short term,but a balanced consequential relationship in a long term.The international tourism income goes ahead of the internal tourism income in pushing the economic development.This conclusion offers a reference to make policies for tourism in Xinjiang.

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Available abstract

This paper,by means of cointegration analysis and Granger consequential check,analyzes the relationship between tourism and economic development of Xinjiang during 1990 to 2006 with the results implying that the both have a long-term cointegration,not continuous temporal sequence.Via the Granger Causality Test,the tourism always lags the economic development.There is no consequential relationship between tourism and economic development in a short term,but a balanced consequential relationship in a long term.The international tourism income goes ahead of the internal tourism income in pushing the economic development.This conclusion offers a reference to make policies for tourism in Xinjiang.

Key concepts: Cointegration, Tourism, Granger causality, Economics, Term (time), Macroeconomics, Causality (physics), Economic system

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